Reference is made to the announcement (ref no: TC-120103-D4EF2) on 3 January 2012 by Tan Chong Motor Holdings Berhad (“TCMH”) with regard to the Distributorship Agreement dated 2 January 2012 entered into between Tan Chong Motorcycles (Laos) Co., Ltd. (“TC Motorcycles” and a company incorporated in the Lao People’s Democratic Republic) and Vietnam Manufacturing & Export Processing Co., Ltd. (“Supplier”) in which TC Motorcycles, a wholly-owned subsidiary of TCMH Group, was appointed the exclusive distributor, importer and after-sales service provider of SYM brand motorcycles in Laos.

On 30 September 2013, both TC Motorcycles and the Supplier have mutually agreed to terminate the Distributorship Agreement by entering into a Termination Agreement due to the non-fulfilment of sales by TC Motorcycles in Laos. Neither party will have any further claims against the other on termination of the Distributorship Agreement.     

The termination of the distributorship will have no material financial effect on the TCMH Group for the financial year ending 31 December 2013. 

This announcement is dated 1 October 2013.